Evidentiary Hearing
The DCPSC has scheduled an evidentiary hearing in this case for Tuesday, May 12, 2026.
The Commission will announce the exact location and time of the hearing in a forthcoming public notice.
Overview
Pepco filed an application for a second Multiyear Rate Plan (MRP), known as the "Climate Ready Pathway," in April 2023 for the years 2024 through 2026. After a comprehensive review process, the Public Service Commission of the District of Columbia (DCPSC) approved a modified, extended pilot version of this rate plan in November 2024. The decision reduced Pepco's initial $190.7 million request by about 35%, allowing a $123.4 million increase over two years (2025–2026). At that stage, the rate case was considered settled, and the new rates were implemented.
However, the District of Columbia Court of Appeals vacated the Commission's approval in March 2026 and sent the case back for further proceedings. The Court of Appeals determined that a formal evidentiary hearing is required to resolve factual disputes regarding specific rate calculations. The Commission created a procedural schedule for this hearing and is evaluating the best approach for handling electric distribution rates while the proceedings are underway.
The now-vacated order originally included the following key measures:
- Consumer protection: Low-income customers in the Residential Aid Discount (RAD) program remain exempt from rate increases, continuing to receive free electric distribution services.
- Enhanced oversight: Quarterly and annual reporting requirements, independent audits, and automatic credit adjustments to address overearning.
- Accountability: A $15.3 million penalty on Pepco for prior billing errors and reductions in recoverable capital expenditures by 19% in 2025 and 40% in 2026.
Under the vacated order, average monthly residential bills would have risen by $7.54 in 2025 and $3.80 in 2026, with $1.00 monthly increases in customer charges. Approximately 41% of the approved revenue increase would have been allocated to residential customers. The Commission has also convened a working group to explore expanding the RAD program, which currently benefits 20,000 households.
Current Status
The DCPSC has formally initiated the remand proceeding directed by the Court of Appeals. Following the Court's decision, the Office of the People's Counsel (OPC) and the Apartment and Office Building Association of Metropolitan Washington (AOBA) filed motions requesting that the Commission immediately suspend the current electric rates, restore rates from before January 1, 2025, and issue refunds to customers. Pepco requested an expedited hearing and asked the Commission to keep the current rates in place.
The DCPSC decided to maintain the currently billed electric rates while gathering more information. The Commission directed all parties to submit supplemental legal briefs to help determine the most appropriate and lawful approach to interim rates during this period. Additionally, the Commission deferred requests for immediate customer refunds. Because the Court's decision was based on procedural issues rather than a finding that the approved rates were unjust or unreasonable, any decisions on refunds will wait until the final merits of the case are resolved.
The DCPSC has scheduled an evidentiary hearing in this case for Tuesday, May 12, 2026. The Commission will announce the exact location and time of the hearing in a forthcoming public notice.
The DCPSC continues to monitor Pepco's performance and compliance. As part of this oversight, the Commission issued an order to address the future of the Senior Citizen and Disabled Residents Rate Credit (SCADRRC) after its initial funding was exhausted. To prevent the program from ending abruptly, the Commission authorized a one-year regulatory asset capped at $1.5 million to continue the credit from October 1, 2025, through September 30, 2026. The Commission also hosted a technical conference on November 12, 2025, to evaluate the impact and feasibility of continuing the SCADRRC.
These actions ensure that Pepco's rates remain aligned with Commission directives, consumer protections, and the District's climate and affordability goals.
Hearings
Community Hearings
The DCPSC held three community hearings across the District (in Wards 8, 5, and 2) in March/April 2024 to gather input from residents and other stakeholders in this pending rate case.
Watch a full recording of the April 3, 2024, hearing held in the DCPSC Hearing Room:
Legislative-style Hearing
On July 30, 2024, the DCPSC convened a legislative-style hearing for Pepco to present oral arguments on FC1176 rate case issues fundamental to the Commission’s decisions. Key topics included Pepco’s investment strategies, alignment with the District’s climate goals, communication with the District, and the merits of traditional versus multi-year rate cases.